Atheros' Sales Jump (Update)
SAN FRANCISCO -- Atheros (ATHR) said it will escape some of the sting of the economic slowdown in the current quarter, thanks to a slew of new products.
The Santa Clara, Calif., company provided a financial forecast on Monday that, while hardly rosy, was brighter than those made in recent days by other chip firms, sending its stock up nearly 7% to $17.24 in extended trading.
"We, like others in the semiconductor industry, face strong economic headwinds in the coming quarter and are cautious in our outlook," finance chief Jack Lazar said in a post-earnings conference call Monday.
But Lazar added later: "We do have some pretty good things happening here as far as product cycles that we think are pretty independent of the overall economy."Technically, Atheros' forecasted revenue range of $131.2 million to $138.1 million is below Wall Street expectations of $145 million. But as has been the case with just about every chip firm reporting earnings in recent weeks, investors appear to assume the average analyst estimates for the fourth quarter are too high, and are more focused on how sharply sales will decline in the next three months. Atheros said sales will be flat to down 5% sequentially, compared to the double-digit percentage drops predicted by other chipmakers recently including Texas Instruments (TXN) and Intersil (ISIL). And Atheros said its gross profit margin might even increase sequentially, with the company projecting a range of 49% to 50%, vs. 49.4% in the third quarter.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV